SAN FRANCISCO, Jan. 11 /PRNewswire/ -- Deutsche Banc Alex. Brown equity research analyst Phil Rueppel today published an industry report, "Open Source Infrastructure -- A Manifesto for the Coming Big Bang." Additionally, yesterday he expanded his coverage of the Linux Market industry by initiating coverage of Red Hat, Inc. (Nasdaq : RHAT) with a BUY rating ($7.0). In his report focused on Open Source technologies, Rueppel outlines: * the market opportunities; * a comparison of the traditional business models in the IT industry and the Open Source model; * several probable success scenarios of the Open Source model; * shortcomings and strengths of Open Source solutions; * the impact of Open Source on the IT industry landscape; * Open Source products and services; * and the profiles of 2 public companies and 29 private companies. "Linux and other Open Source technologies continue to demonstrate the characteristics of strong growth, increased customer penetration, and disruptive change -- all factors that create investment opportunities in our view," said Rueppel. "We believe that as Open Source moves from the early adopter internet-centric customers towards adoption by the corporate mainstream -- a trend that we are currently seeing -- the vendors focused on the segment will be the winners both fundamentally and in the stock market." His positive opinion on Open Source technologies is based on the following key investment themes: * the IT industry's prevailing software development model is "inadequate" * the Open Source development model can be a "better mousetrap" to address enterprises' IT needs * the Open Source model could lead to significant disruption of the IT industry landscape * Open Source companies can develop profitable business models by leveraging Open Source to deliver "single stack" IT solutions * Linux is the ultimate proof-point that the Open Source model can succeed; Linux has quickly emerged as the only other viable computing platform alongside Sun Microsystem's (SUNW) Solaris and Microsoft Corporation's (MSFT) Windows2000 Deutsche Banc Alex. Brown identifies the US investment banking activities of DB Alex. Brown LLC and Deutsche Bank Securities Inc., which are indirect subsidiaries of Deutsche Bank AG. With over EUR995 billion in assets as of September 30, 2000 and approximately 95,000 employees, Deutsche Bank offers its clients unparalleled financial services throughout the world. It ranks among the leaders in asset management, capital markets, corporate finance, custody, cash management and private banking. Deutsche Bank is divided into five major business units: Global Corporates and Institutions, Global Technology and Services, Asset Management, Corporates and Real Estates and Private and Retail Banking. Deutsche Bank Securities Inc. maintains a net primary market in the common stock of Red Hat, Inc. The following stock(s) is (are) optionable: Red Hat, Inc. Information herein is believed to be reliable and has been obtained from sources believed to be reliable, but its accuracy and completeness cannot be guaranteed. Opinions, estimates, and projections constitute our judgment and are subject to change without notice. This publication is provided to you for information purposes only and is not intended as an offer or solicitation for the sale of any financial instrument. Deutsche Bank Securities Inc., DB Alex. Brown LLC, and their affiliates worldwide, may hold a position or act as market maker in the financial instruments of any issuer discussed herein or act as advisor or lender to such issuer. Transaction should be executed through a Deutsche Bank entity in the client's home jurisdiction unless otherwise permitted by law. Deutsche Bank Securities Inc., and DB Alex. Brown LLC, are members of NYSE and NASD. In the U.S. this report may be distributed either by Deutsche Bank Securities Inc., or DB Alex. Brown LLC. Interested parties are advised to contact the U.S. entity they currently deal with, or the U.S. entity that has distributed this report to them.
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